New store expansion drives Retail Segment sales at Target

18 Nov '09

4 min read

Net write-offs in the quarter were $280 million, in line with expectations. The allowance for doubtful accounts was $1,025 million at quarter-end, compared with $1,004 million at the end of the second quarter.

Other Expenses

Net interest expense for the quarter decreased $43 million from third quarter 2008 to $191 million, reflecting a lower average portfolio interest rate combined with lower average debt balances.

The company's effective income tax rate for the third quarter was 36.1 percent in 2009, down from 41.7 percent in 2008, primarily due to a decrease in the amount of reserves recorded for tax uncertainties and a higher proportion of earnings that are not subject to tax. For the full year, the company now expects an effective income tax rate in the range of 36.5 to 37.5 percent.

Fourth Quarter Outlook

In light of the current and projected economic environment and expectations for a highly promotional holiday season, Target remains cautious about fourth quarter performance and is planning conservatively in both business segments.

Target Corporation

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